Qantas is trimming capacity growth and cutting aircraft orders after downgrading expansion plans.
The moves will help achieve Aus$700 million in savings in response to a slowing Australian domestic travel market.
The airline is now targeting capacity growth in the year ending June 30, 2012 of 5.5%, down from 8% previously. Capital expenditure in the second half of the current financial year will fall by Aus$100 million (US$106.8 million).
Next financial year, it will fall by Aus$300 million accompanied by a further Aus$300 million reduction in leased aircraft commitments, Qantas said. Delivery of 34 aircraft is now expected next financial year, down from 43 expected previously.
Orders for 12 narrow-body aircraft have been cancelled or deferred, Qantas said.
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